Aggressive Binance buyers drove the recent Bitcoin (BTC) rally

Binance’s influence became visible during the latest Bitcoin (BTC) recovery above $94,000. The exchange saw increased buying conviction, as reflected in the increased market-taker ratio. 

Binance concentrated Bitcoin (BTC) demand during the latest market recovery. The exchange saw increased traffic and became the main hub for aggressive buyers. 

Traders noticed a shift in sentiment, which followed an increase in market-taker buy orders. The taker orders from buyers are not a direct signal for price growth but a sign of conviction. Market takers do not wait for their buy orders to be filled but go after the offers of sellers. This move reflects the conviction of a potential rally, where the buyers do not care about the price slippage. At one point, up to 2,400 BTC were bought up on Binance in minutes, leading to another price spike for BTC.

Increased taker volumes and exuberance are not always tied to positive price action. However, the metric reflects conviction and shows a shift in bearish sentiment, staving off panic-selling and capitulation.

Binance taker volume spiked in the short term during the biggest BTC rally for the month, which took the leading coin close to $95,000. However, the ratio has been growing for a while. In the past 30 days, the taker buy/sell ratio increased by 18.9%, signaling a shift in conviction. The ratio also increased by 6.2% in the past week, reflecting a wave of buying pressure.

The taker ratio for buyers accelerated even more after the Easter weekend, leading to the recent market spike. The trader behavior moved into the ‘greed’ zone of the Bitcoin fear and greed index, though the indicator fell from 72 points to 68 points in the past day. 

After the rush to buy more BTC, the leading coin took a step back to $92,542.38, with trading volumes sliding from $57B to $34B in 24 hours. Binance remained the most influential market for both spot demand and derivative trading, with around 6.2% of all BTC activity. 

Binance extends the outflow of BTC

Along with the more aggressive buying, Binance is once again noting withdrawals of BTC. After a period of deposits during the market correction in early April, BTC withdrawals resumed. 

Binance decreased its BTC holdings from over 594K BTC to 583K, reflecting the trend of renewed whale accumulation in personally controlled wallets. 

The trend for all exchange reserves led to an all-time low of available spot BTC. All exchanges hold around 2.53M BTC, while whale and shark wallets increased their holdings in the past quarter. 

BTC demand from ETF is also adding to the scarcity of coins. The recent ETF inflows show that BTC has historically been bought during notable political or economic milestones. BTC is still chosen as an asset with unlimited upside and an ability to rally during chaotic market periods. Currently, BTC is outperforming some of the top tech stocks, though lagging behind gold as a store of value. 

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